Windsurf Acquisition by Cognition AI: $82m ARR, 350+ Enterprise Customers

Cognition AI has agreed to acquire Windsurf, an AI code generation company, for an undisclosed price. The acquisition covers Windsurf's intellectual property, product line, brand, and business operations, as well as its engineering, product, and go-to-market teams. Windsurf brings $82m in annual recurring revenue and a customer base of over 350 enterprises. The deal follows a separate licensing agreement between Windsurf and Google.

Cognition AI, a San Francisco-based artificial intelligence (AI) company, has agreed to acquire Windsurf, an AI code generation company, for an undisclosed price. The acquisition covers Windsurf's intellectual property, product line, brand, and business operations, as well as its engineering, product, and go-to-market teams [1].

Windsurf brings $82 million in annual recurring revenue (ARR) and a customer base of over 350 enterprises. The deal follows a separate licensing agreement between Windsurf and Google, which hired Windsurf's CEO Varun Mohan and co-founder Douglas Chen to work on agentic coding projects at Google's DeepMind division [2].

According to Cognition AI, the acquisition will enable it to scale faster in enterprise software engineering. The company plans to integrate Windsurf's integrated development environment (IDE) platform and technology into its own products, including its autonomous software engineering agent, Devin [1].

The acquisition highlights the strategic importance of AI coding tools in the rapidly evolving software development landscape. It also underscores the competitive dynamics between AI startups and major tech companies, as seen in the recent licensing deal between Google and Windsurf [2].

Investors will closely monitor Cognition AI's ability to integrate Windsurf's technology and maintain its growth trajectory. The success of the acquisition will depend on Cognition AI's execution and the market's acceptance of the combined platform [1].

References:
1. [https://finance.yahoo.com/news/cognition-ai-acquire-windsurf-090611572.html](https://finance.yahoo.com/news/cognition-ai-acquire-windsurf-090611572.html)
2. [https://www.bloomberg.com/news/articles/2025-07-14/ai-startup-cognition-to-buy-windsurf-after-google-licensing-deal](https://www.bloomberg.com/news/articles/2025-07-14/ai-startup-cognition-to-buy-windsurf-after-google-licensing-deal)